Senate Bill 2392

AN ACT TO AMEND SECTION 25-11-111, MISSISSIPPI CODE OF 1972,
TO PROVIDE THAT AN ELECTED PUBLIC OFFICIAL WHOSE TERM OF OFFICE DOES NOT END AT
THE END OF A MONTH AND WHO RETIRES AT THE END OF HIS TERM OF OFFICE, TO BEGIN
RECEIVING A RETIREMENT ALLOWANCE THE DAY AFTER THEIR TERM OF OFFICE ENDS
PRORATED TO THE END OF THE MONTH UNDER CERTAIN CONDITIONS; AND FOR RELATED
PURPOSES.

25-11-111. (1)
Any member upon withdrawal from service upon or after attainment of the
age of sixty (60) years who shall have completed at least four (4) years of
creditable service, or any member upon withdrawal from service regardless of age
who shall have completed at least twenty-five (25) years of creditable service,
shall be entitled to receive a retirement allowance which shall begin on the
first of the month following the date the member's application for the
allowance is received by the board, but in no event before withdrawal from
service; however, if the member is an elected public official whose term of
office does not end at the end of a month, such member shall be entitled to
receive a retirement allowance prorated to the end of the month beginning the
day after the member's term of office ends if:

(a) The member retires at the end of the term of
office, and

(b) The member's application for the allowance
is received during the month prior to the date of the retirement of the member.

(2) Any member whose withdrawal from service
occurs prior to attaining the age of sixty (60) years who shall have completed
four (4) or more years of creditable service and shall not have received a
refund of his accumulated contributions shall be entitled to receive a
retirement allowance, beginning upon his attaining the age of sixty (60) years,
of the amount earned and accrued at the date of withdrawal from service.

(3) Any member in service who has qualified for
retirement benefits may select any optional method of settlement of retirement
benefits by notifying the Executive Director of the Board of Trustees of the
Public Employees' Retirement System in writing, on a form prescribed by the
board, of the option he has selected and by naming the beneficiary of such
option and furnishing necessary proof of age.
Such option, once selected, may be changed at any time prior to actual
retirement or death, but upon the death or retirement of the member, the optional
settlement shall be placed in effect upon proper notification to the executive
director.

(4) The annual amount of the retirement
allowance shall consist of:

(a) A member's annuity which shall be the
actuarial equivalent of the accumulated contributions of the member at the time
of retirement computed according to the actuarial table in use by the system;
and

(b) An employer's annuity which, together with
the member's annuity provided above, shall be equal to one and seven-eighths
percent (1-7/8%) of the average compensation for each year of state service up
to and including twenty-five (25) years of membership service, and two and one-fourth
percent (2-1/4%) of the average compensation for each year of state service
exceeding twenty-five (25) years of membership service. However, after the board of trustees has
begun implementing the changes in the computation of the retirement allowance
as provided in subsection (5) of this section, the employer's annuity
shall be equal to:

(i) One and seven-eighths percent (1-7/8%) of
the average compensation for each year of membership service up to and
including the number of years specified in Column A of the table in subsection (5)
of this section for the latest phase that has been implemented, and

(ii) Two percent (2%) of the average compensation
for each year of membership service exceeding the number of years specified in
Column A of the table in subsection (5) of this section for the latest
phase that has been implemented up to and including twenty-five (25) years, and

(iii) The percentage of the average compensation
specified in Column B of the table in subsection (5) of this section for
the latest phase that has been implemented for each year of membership service
exceeding twenty-five (25) years.

(c) A prior service annuity equal to one and
seven-eighths percent (1-7/8%) of the average compensation for each year of
state service up to and including twenty-five (25) years of prior service, and
two and one-fourth percent (2-1/4%) of the average compensation for each year
of state service exceeding twenty-five (25) years of prior service for which
the member is allowed credit. However,
after the board of trustees has begun implementing the changes in the
computation of the retirement allowance as provided in subsection (5) of this
section, the prior service annuity shall be equal to:

(i) One and seven-eighths percent (1-7/8%) of
the average compensation for each year of prior service up to and including the
number of years specified in Column A of the table in subsection (5) of this
section for the latest phase that has been implemented, and

(ii) Two percent (2%) of the average compensation
for each year of prior service exceeding the number of years specified in
Column A of the table in subsection (5) of this section for the latest
phase that has been implemented up to and including twenty-five (25) years, and

(iii) The percentage of the average compensation
specified in Column B of the table in subsection (5) of this section for
the latest phase that has been implemented for each year of prior service
exceeding twenty-five (25) years.

(d) Any retired member or beneficiary thereof
who was eligible to receive a retirement allowance before July 1, 1991, and who
is still receiving a retirement allowance on July 1, 1992, shall receive an
increase in the annual retirement allowance of the retired member equal to one-eighth
of one percent (1/8 of 1%) of the average compensation for each year of state
service in excess of twenty-five (25) years of membership service up to and
including thirty (30) years. The
maximum increase shall be five-eighths of one percent (5/8 of 1%). In no case shall a member who has been
retired prior to July 1, 1987, receive less than Ten Dollars ($10.00) per month
for each year of creditable service and proportionately for each quarter year
thereof. Persons retired on or after
July 1, 1987, shall receive at least Ten Dollars ($10.00) per month for each
year of service and proportionately for each quarter year thereof reduced for
the option selected. However, such Ten
Dollars ($10.00) minimum per month for each year of creditable service shall
not apply to a retirement allowance computed under Section 25-11-114 based on a
percentage of the member's average compensation.

(e) The board shall recalculate the retirement
allowance of any member or the beneficiary of such a member, if the member or
beneficiary is eligible to receive a retirement allowance before July 1, 1999,
by using the criteria in paragraphs (b) and (c) of * * * subsection (5)
of this section that provides for two and one-fourth percent (2-1/4%) of
the average compensation for each year of service exceeding twenty-five (25)
years.

(f) Any member upon withdrawal from service upon
or after attaining the age of sixty (60) years who has completed at least four
(4) years of creditable service, or any member upon withdrawal from service
regardless of age who has completed at least twenty-five (25) years of
creditable service, shall be entitled to receive a retirement allowance
computed in accordance with the formula set forth in this section. Such retirement allowance otherwise payable
may be converted into a retirement allowance of equivalent actuarial value in
such an amount that, with the member's benefit under Title II of the federal
Social Security Act, the member will receive, so far as possible, approximately
the same amount annually before and after the earliest age at which the member
becomes eligible to receive a social security benefit.

(5) Beginning on July 1, 2000, the board of
trustees shall implement changes in the computation of the amount of the annual
retirement allowance, which changes shall be implemented in phases as set forth
in the table in this subsection. The
board of trustees shall implement the phases systematically upon July 1 after
the board's actuary certifies that implementation of a phase will not cause the
unfunded accrued actuarial liability amortization period for the retirement
system to exceed twenty-two (22) years.
The board of trustees shall have the exclusive authority to set the
assumptions that are used in the actuarial evaluation in accordance with
Section 25-11-119(9). The board of
trustees shall recalculate the retirement allowance of any retired member or
beneficiary of such a member as each phase is implemented.

RETIREMENT
ALLOWANCE COMPUTATION

IMPLEMENTATION
TABLE

(A) (B)

PHASE 2% FOR YEARS PERCENTAGE

ABOVE
THIS FOR YEARS

NUMBER
AND ABOVE 25

≤25 YEARS YEARS

________________________________________________________________

Phase
1 20 years 2.250%

Phase
2 15 years 2.250%

Phase
3 10 years 2.250%

Phase
4 5 years 2.250%

Phase
5 0 years 2.250%

Phase
6 0 years 2.375%

Phase
7 0 years 2.500%

Column
A shows the years to which two percent (2%) is applicable in computing the
retirement allowance, which are all the years of service exceeding the number
specified in Column A for the phase that has been implemented up to and
including twenty-five (25) years.

Column
B shows the percentage that is applicable to the number of years of service
exceeding twenty-five (25) years in computing the retirement allowance.

(6) No member, except members excluded by the
Age Discrimination in Employment Act Amendments of 1986 (Public Law 99-592),
under either Article 1 or Article 3 in state service shall be required to
retire because of age.

(7) No payment on account of any benefit granted
under the provisions of this section shall become effective or begin to accrue
until January 1, 1953.

(8) (a)
A retiree or beneficiary may, on a form prescribed by and filed with the
retirement system, irrevocably waive all or a portion of any benefits from the
retirement system to which the retiree or beneficiary is entitled. Such waiver shall be binding on the heirs
and assigns of any retiree or beneficiary and the same must agree to forever
hold harmless the Public Employees' Retirement System of Mississippi from any
claim to such waived retirement benefits.

(b) Any waiver pursuant to this subsection shall
apply only to the person executing the waiver.
A beneficiary shall be entitled to benefits according to the option
selected by the member at the time of retirement. However, a beneficiary may, at the option of the beneficiary,
execute a waiver of benefits pursuant to this subsection.

(c) The retirement system shall retain in the
annuity reserve account amounts that are not used to pay benefits because of a
waiver executed under this subsection.

(d) The board of trustees may provide rules and
regulations for the administration of waivers under this subsection.

SECTION
2. This act shall take effect and
be in force from and after July 1, 2004.